Consumer surplus arises in a market because
A. at the current market price, quantity demanded is greater than quantity supplied.
B. the market price is higher than what some consumers are willing to pay for the product.
C. the market price is below what some consumers are willing to pay for the product.
D. at the current market price, quantity supplied is greater than quantity demanded.
Answer: C
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Which of the following is an example of an intermediate good?
a. The flowers that Mr. Grover buys at a local nursery b. The flowers that Timmy picks from a neighbor's garden and brings to Mrs. Grover c. The flour that Grandma buys to bake a birthday cake d. The flour that Joe buys so that he can eat pizza three nights a week e. The flour that Amy orders each month for the bakery she manages
In a two-period model, the same quantity of a resource will be used in both time periods
a. Whenever the discount rate is set equal to the rate price is increasing b. Whenever the discount rate is zero and the marginal net benefit curves are equal c. Whenever the discount rate is zero d. Whenever the supply constraint is binding e. Whenever Hotelling's rule applies
The yield curve generally slopes upward because
A. shorter maturity bonds have more default risk. B. longer maturity bonds typically pay higher interest rates than shorter maturity bonds. C. longer maturity bonds are not taxable. D. longer maturity bonds typically pay lower interest rates than shorter maturity bonds.
Empirical research indicates that the 2014 expansion of Medicaid has led to a number of unintended consequences including:
a. more physicians accepting new Medicaid patients. b. fewer Medicaid enrollees seeking emergency room treatment. c. an increase in the birthrate among the eligible population. d. higher per capita spending on the expansion population than anticipated. e. expanded opiate use among the elderly.